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Crypto Trading Platform Bithumb presumably hacked of 19 Million dollars in EOS & XRP

By Ronak_Sunara - 2019-03-31

On 30th March, Bithumb temporarily paused its deposits and withdrawals when they detected some suspicious withdrawals on the previous day. The exchange took all the security measures to protect the funds from any outside attacks and moved the funds into the cold storage. But the exchange wasn’t protected from the insiders (staff) as a result of which funds were stolen by someone on the workforce.

 

More than 3 million EOS (approx. 12.5 million dollars) and 20 million XRP (approx. 6.2 million dollars) were moved from Bithumb’s hot wallet to an unknown address. According to company, the funds that were stolen belonged to the exchange and user’s funds are unaffected and secure in the cold wallet.

[Notice?]
We deeply apologize to our members for delaying the cryptocurrency deposit and withdrawal service, we would like to inform you of the circumstances of the grounds and confirm that your assets are safe.
For more details >> https://t.co/dOvT78P0sK

— Bithumb (@BithumbOfficial) March 30, 2019

An analysis and investigation shows that the stolen funds are being moved to other wallet addresses and various exchanges. The list of exchanges that received most funds are EXMO (662,000 EOS), Changelly (192,000 EOS), ChangeNOW (140,000 EOS), KuCoin (96,000 EOS) and some others. Changelly published that it has received transactions of 243,000 XRP ($76,000) and 114,000 EOS ($479,000) which seem suspicious and are supposedly from the Bithumb hack funds. XRP and EOS were sent in 8 and 52 different transactions respectively. Changelly has immobilized the funds and blacklisted the addresses until the matter is clear.

 

It is believed that the hack may be related to Bithumb’s recent decision on cutting up 50% of the workforce. CoinBene is also a suspect in the incident as it was reported moving $105 million out of the hot wallet by data scientist at blockchain infrastructure firm Elementus.

 

Bithhumb has assured the community that they are working with cyber police agency, the Korean internet & Security Agency (KISA) and cybersecurity companies to recover the stolen funds asap like the last time. Workforce verification system is also under development to avoid such incidents in the future. The deposits and withdrawals will be resumed as soon as the exchange is secured, and service stability is re-established.